Digital Video Advertising Continues to Expand/e-Marketer

Ads will get shorter and shorter

The two core areas of digital video monetization—advertising and subscriptions—remain on aggressive growth trajectories. Revenue in the US is up across the board and forecasts call for continued increases, as explored in the new eMarketer report, “Q1 2016 Digital Video Trends: Monetization, Audience, Platforms and Content,” the latest installment in an ongoing series of quarterly video ecosystem overviews.

Allocation of 2015 vs. 2016 Digital Ad Spending According to US Ad Buyers, by Format (% of respondents)







Cowen and Company survey data published in Q1 2016 shows significant growth expectations for digital video ad spending. On a dollar basis, US digital video ad spending is predicted to reach $28.08 billion in 2020, up from $9.90 billion in 2016.

These figures will make video the fastest-growing category on mobile, on desktop and overall from 2016 through 2020. Video’s growth will outpace that of social, and even as growth starts to trail off toward the end of the forecast period, it will stand at over 20%, according to Cowen. Mobile video will outpace desktop, but even desktop video spending growth will stay in the double digits as other desktop categories sink to either single-digit or negative growth territory.

US Digital Ad Spending, by Device and Format, 2014-2020 (billions)

[Note: Cowen and Company considers social as “a type of provider” as opposed to a discrete ad format, according to information shared with eMarketer. Its social ad spending figures include display but not video advertising.]

Video will also grow as a percentage of US ad buyers’ digital budget allocations, according to Cowen. In 2016, video will account for 19.7% of spending, compared with 17.7% in 2015. Social will also grow, while search stays flat and display trends downward.

YouTube will remain the top ad-based video platform in the US through at least 2017, Cowen expects, with a 38.2% spending share. However, YouTube’s share, as well as that of its parent, Google/DoubleClick, will inch downward as Facebook and its Instagram unit gain traction.

eMarketer corporate subscription clients can view the full report here.

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About Framework Marketing Group

Framework Marketing Group has access to and is able to provide a range of co-ordinated creative thinkers…as and when you need them. It’s a marketing communications company with a toolbox of resources able to be used on an “on-demand” basis. The focus is on communication tools that evaluate brand strategies and interpret consumer behaviour to ensure a consistent and practical brand communications programme. Specifically: 1. Build strategic marketing plans: Understanding market data so strategic marketing plans have practical outcomes and communications to target markets are effective. 2. Communication audits From analysis of all messages – understand how customers really think and then recommend improvements to messages and media channel selection 3. Brand evaluations Establish how robust the brand equity is with each target market so communications to them is relevant 4. Integrate all communication channels Recommend an effective mix of communication channels to achieve economies of scale timing and content compatibility 5. Interpret market research Understand and fix gaps in market knowledge for consumers, customers and staff 6. Sales strategies Develop sales strategies from a foundation of core marketing platforms so all communications to market are complementary to each other
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